Clinton Opposes 5-Year Internet Tax Moratorium

Sep 25th 2000

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Earlier this year the House passed a measure to freeze any attempts at an Internet tax for five years. Now that Congress is winding down for the year and attempting to pass many last-minute measures, Clinton has announced that this is one measure that won’t make it through the pipeline.

Although no attempts to push the Internet tax moratorium through the waning days of this Congressional session, the White House is concerned that the House may attempt to tack this measure onto another bill during a last minute bill- signing frenzy.

The bill, which passed in the House, sets a five-year moratorium on Internet access taxes and new, multiple, and discriminatory taxes on electronic commerce; such moratorium is now set to expire in October, 2001. Congress will still be able to address this measure next year.

There is some room for negotiation – the White House has indicated it might not object to passage of a two-year moratorium on Internet taxes.